The Financial Rule of 100 Applied to the Golden Years
Written By: Jeremy Smith | Amerishield
If you subtract your age from 100 the difference is the suggested maximum percentage of investment savings you should permit to be at risk. Note the word maximum, not the minimum, permitted to be at risk.
Risky investments are not for everyone. It could be dangerous for everyone who violates the financial rule of 100. At age 55 (100 – 55 = 45) this suggests that you permit no more than 45 percent of your investment assets to be in risky investments and move 55 percent to safety and as you age, move more and more to safety.
Want to do away with the math? Try the money aging factor — just use your age as the factor. Your age tells you the suggested minimum percentage of your investment capital that should be safe, guaranteed and re-insured investments. If you’re 65 years old, then 65% of your retirement savings should be in guaranteed safe money products.
“I’m more interested in the return of my money, than the return on my money.” — Mark Twain
Here’s my gambling success formula: Gamble with no more today than you can afford to lose today. At the race track, in the Casino and on Wall Street, gamble with no more today than you can afford to lose today.
Where should I invest my retirement plan?
The golden years of retirement now require more gold. Golden bonus fixed indexed annuities and fixed annuities can provide more income, more growth and less tax. These annuities offer an ideal place to invest qualified retirement plans with guaranteed growth and guaranteed income you cannot outlive. Guaranteed income forever. Now that’s peace of mind — sleep insurance for the golden years of retirement.
*AmeriShield agents discuss your complete insurance and risk tolerance as well as your goals for retirement and what you plan for your insurance products to do for you and your family before they discuss any products with you. They fully educate you on the differences in the types of fixed and indexed annuities that meet your specific situation and offer you “The Power of Choice” to achieve your goals.
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Note: Any information in this blog is not and should not be construed as investment advice.
It’s nice to know that fixed indexed annuities can provide more income, more growth and less tax. Giving you a peace of mind having a guaranteed income, that’s great.